Why is the house priced a little above market value? it will move faster if you can leave something on the table for the buyer. I would suggest lowering the price to a little below market value, or offering lease/purchase, owner financing or some terms that will add value for the buyer.
Something that i prefer to do is try and get a buyer prior to completion of the rehab. In fact I will usually put a sign with "STILL TIME TO PICK YOUR COLORS!" after all rough work has been done. This is a much more attractive home for a buyer due to the fact that picking color carpet and paint usually makes the deal. In a six month project i usually put up the sign by the third month.
Good Luck With your rehabs!
[ Edited by joel on Date 07/25/2005 ]
find a realtor in the area that offer mls listing for a flat fee. you still will have to offer a small commission to attract buyers agents because no one is going to work for free.
I am lovin this hot FL market. It is easy to sell houses, realtor will take just 2.5%, and nobody realizes what their houses are worth. But .... you have to market to find houses, and then be ready to buy quick. Once you buy it at a decent price, the rest comes easy.
If the property is price in the ball park, it takes about 3 days to get a contract. Now getting the appraisal to match the purchase price is another issue.
If a property has already been foreclosed, then it will be listed on the MLS and will be priced at retail. If you buy it at the auction, you had better know what you are doing because making a mistake there can be costly. I you are trying to get a property pre-foreclosure your competition will be several hundred investors, realtors, mortgage lenders, bankruptcy lawyers, etc. Not trying to discourage you, but because real estate is hot, it is also very competitive. You do not just casually fall into a nice preforclosure. Like most things in life, you have to work your butt off to be successful.
I do not go to the auction. But I hear that it is the same group of guys paying almost full retail. They do not want to let anyone else in so they will push the price just to force people out. They buy and then resell to unsuspecting real estate investing newbies.
Why is the house priced a little above market value? it will move faster if you can leave something on the table for the buyer. I would suggest lowering the price to a little below market value, or offering lease/purchase, owner financing or some terms that will add value for the buyer.
Good luck!
Something that i prefer to do is try and get a buyer prior to completion of the rehab. In fact I will usually put a sign with "STILL TIME TO PICK YOUR COLORS!" after all rough work has been done. This is a much more attractive home for a buyer due to the fact that picking color carpet and paint usually makes the deal. In a six month project i usually put up the sign by the third month.
Good Luck With your rehabs!
[ Edited by joel on Date 07/25/2005 ]
find a realtor in the area that offer mls listing for a flat fee. you still will have to offer a small commission to attract buyers agents because no one is going to work for free.
gordo2417
Do you know of any good reputable , national notebrokers ?
I would next time consider listing with a full service broker and see what type of customers the realtors can bring in.
Well california is extremely hot as well.
last month I spent 53000.00 on TV, newspaper, radio, BillBoards, and Mail.
The return was 9 times investment with a tripple net of 6 times the investment.
So I would say market more thean the next guy and do it in a way that makes them feel left out.
u pulled almost 500k in a month?
what is this tripple net you keep talking about?
Yep
We base our numbers on a minimum number of purchases which is 10 Houses a month
We don’t buy unless we can see an average of52000.00 per deal
with a triple net of 28000
It isn’t always this linier but fairly consistent
[ Edited by IBuyHousesInc on Date 07/20/2005 ]
Triple net is my profit after
1) cost to acquire
2) cost to rehab/hold
3) cost to resale
So its my net return prior to operational costs
[ Edited by IBuyHousesInc on Date 07/20/2005 ]
Quote:
On 2005-07-20 11:53, IBuyHousesInc wrote:
Triple net is my profit after
1) cost to acquire
2) cost to rehab/hold
3) cost to resale
So its my net return prior to operational costs
<font size=-1>[ Edited by IBuyHousesInc on Date 07/20/2005 ]</font>
for your net to be 28000 if would be after operational costs not prior to operation costs, correct?
no prior..
I track every number I can and historically here are my numbers
Purchase Costs 1.34%
Repair Cost 10,000.00
money costs 4800.00
Resale costs 3.17%
Now I am sure I am little dumb about this but I charge myself 4800.00 on every purchase to use my own money.
This way if I ever need to use someone else’s money my projections stay the same.
I also count on spending 10,000 on every transaction for the cost to rehab and hold.
I rarely go over the 10k
[ Edited by IBuyHousesInc on Date 07/20/2005 ]
I am lovin this hot FL market. It is easy to sell houses, realtor will take just 2.5%, and nobody realizes what their houses are worth. But .... you have to market to find houses, and then be ready to buy quick. Once you buy it at a decent price, the rest comes easy.
Brenda
If the property is price in the ball park, it takes about 3 days to get a contract. Now getting the appraisal to match the purchase price is another issue.
If a property has already been foreclosed, then it will be listed on the MLS and will be priced at retail. If you buy it at the auction, you had better know what you are doing because making a mistake there can be costly. I you are trying to get a property pre-foreclosure your competition will be several hundred investors, realtors, mortgage lenders, bankruptcy lawyers, etc. Not trying to discourage you, but because real estate is hot, it is also very competitive. You do not just casually fall into a nice preforclosure. Like most things in life, you have to work your butt off to be successful.
I do not go to the auction. But I hear that it is the same group of guys paying almost full retail. They do not want to let anyone else in so they will push the price just to force people out. They buy and then resell to unsuspecting real estate investing newbies.